In a sudden turn of events, Vikram Pandit, Citigroup CEO, quit from his position when tensions between Chairman Michael O’Neill and CEO Vikram Pandit reached a boiling point.
Tensions between Michael O’Neill, the chairman and Vikram Pandit, the CEO started brewing from day one of O’Neill’s takeover of reigns as a Chairman of the Citigroup in April.
According to sources, the tension between chairman O’Neill and CEO Vikram Pandit, hit the peak during a baord meeting on Monday night, when O’Neill criticised the Citibank CEO for not being involved in the day-to-day operations of the bank, and told him to get more involved.
Vikram Pandit, who had been mulling over quitting the bank for sometime now, took the opportunity to step down from his position. Sources also said that O’Neill did not try to stop him.
What followed after Vikram Pandit’s abrupt departure from the position of Citigroup CEO was that the board elected Michael Corbat, the head of Europe, Middle East, and Africa, as the new Citigroup CEO. The appointment of the new CEO stunned the employees and investors early on Tuesday morning.
It is also believed that CEO Vikram Pandit had vehemently opposed split of the bank and now, with his exit, these talks could revive.
On Tuesday, the Citigroup stock sold off sharply, but by the close, it was up more than 1.5%. In general, bank stocks under-performed on Tuesday with the KBW Bank Index (BKX) falling 0.50% compared to an over 1% gain in the S&P 500.